It is the very trait of the securities markets to move backward and forward from one end to the other depending on the popular frame of mind and in such times, those who can part reason from sentiment can mark opening.

Well, there is a response in one of the proven portfolio investment line of attack - Asset Allocation/portfolio management. What is asset allocation? How does it work? How does it help an investor to invest opposing to the stock market?

Portfolio Management is the scientific process of separating all your money across various non-correlated asset classes. In simple terms, if your money is allocated between, bonds and, you have taken the first step.

One may consider various other investment options like property or gold but as they don’t have an direct impact on stock exchange, therefore, we would not discuss that at present in this article. The second stride is to know how much money should be allocated in which of the options. Now this is a function of two things, the investment alternative has certain traits or uniqueness and the investor has certain financial objective as well as certain risk hunger.